🚨 $XPL Faces Strong Downtrend as Market Pressure Builds 🚨
Plasma ($XPL ) has continued to slide, falling over 14% in the last 24 hours and more than 70% in the past month. The token is struggling as traders shift focus to newer stablecoin networks and ongoing selling pressure deepens the decline.
1️⃣ Rising Competition Hits Confidence
Circle’s Arc chain, supported by BlackRock and HSBC, has entered the market with its testnet launch. Arc’s focus on stablecoin payments directly challenges Plasma’s position, attracting both liquidity and attention. Plasma’s TVL has dropped sharply to around $929M, showing a major fall in network usage and investor confidence.
2️⃣ Profit-Taking After Massive ICO Gains
After a 17x rally from its ICO, early investors have started booking profits. Concerns about upcoming token unlocks in 2026 have added to the fear, with large holders selling off nearly 600M XPL recently. This heavy sell pressure has pulled prices down and increased volatility.
3️⃣ Technical Signals Remain Weak
The price has broken below the key 0.35 support zone and is now hovering around 0.30. RSI shows oversold levels, but momentum is still weak. Resistance stands near 0.57, while the next possible support lies around 0.25.
Market Outlook: Unless strong buying volume returns, XPL may continue to face short-term pressure. A recovery above 0.35 could be the first sign of stabilization, but traders should stay cautious.
